Business & Finance Perspectives

The IRS is proposing that taxpayers that have an employer identification number (EIN) will be required to update their information with the IRS.
At issue is that EINs - which are issued to employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates, government agencies, certain individuals, and other business entities for tax filing and reporting purposes – are commonly issued to representatives acting on behalf of an applicant. However, that representative may subsequently lose its authorization to represent them.
To address this, a proposed revision to Form SS-4 (Application for Employer Identification Number) would require the disclosure of the applicant’s “responsible party” and that person’s SSN, individual taxpayer identification number, or EIN. Note – it is proposed that this change would apply retroactively to all persons possessing an EIN, as well as to new applicants. To read more see the Federal Register, Volume 77, No. 50.